On Monday, the Pakistan Stock Exchange’s benchmark KSE-100 index surged by 860 points amidst a visit from a Saudi investment delegation. According to the PSX website, the KSE-100 index closed at 72,764.24, marking a gain of 862.15 points, or 1.2%, from the previous close of 71,902.09.
Over the past year, the index has seen a remarkable surge of 73.4%, with a year-to-date increase of 12.9%. A Saudi delegation arrived in Islamabad to discuss trade and investment opportunities, especially in the exploration and production sectors.
Adnan Sheikh, assistant vice president at Pak Kuwait Investment Company, attributed the market’s rise to news of the delegation’s arrival and an IMF statement regarding a mission visit. He noted that the PSX remains attractively priced, with a price-to-earnings ratio below 5x, compared to the average of 8x.
Last month, Pakistan concluded a short-term $3 billion programme, averting sovereign default. However, Prime Minister Shehbaz Sharif’s government emphasizes the necessity of a new, longer-term programme. The IMF announced an upcoming mission visit to Pakistan to discuss a programme coinciding with Islamabad’s initiation of the annual budget-making process for the next financial year.
While the IMF did not specify the visit’s dates or the programme’s size or duration, Finance Minister Muhammad Aurangzeb expressed hope for outlining a new IMF loan in May. Pakistan is anticipated to seek at least $6 billion and request additional financing from the Fund under the Resilience and Sustainability Trust.
